What is a credit score?

Cyberguide to Wichita Logo



This Site   The Web

Get your credit score for FREE!
  About Wichita
  News & Weather
  Health Care
  Kansas Links
  Non-Profit Organizations
  Professional Organizations
  Singles & Dating
  Social Services
  Hotel & Motel Reservations
  Public Transportation
  Auto Rentals
  City Maps
  Arts, Leisure & Entertainment
    Classical Music & Dance
    Popular Music & Concerts
    Dining Out
    Top Attractions
    Points of Interest
    Special Events
    Regional Attractions
  Calendar of Events
  Business Directory
  Business Opportunities
  Find a Job Online
  Financial Services
  Business Directory
  Computers & Internet
  Real Estate
  Shopping Centers
  Online Shopping Mall
Improve Your Credit Score
Boost Your Credit Score

What is a credit score?

A credit score is a sum used by lenders as an indicator of how likely you are to repay your loans. Your credit score is generated by a mathematical formula utilizing the data from your TransUnion, Equifax or Experian credit reports. Lenders have been using credit scores as part of the lending decision for over than 20 years.

What factors influence my credit score?
Various factors determine your credit score, including the following:

  • Payment History
  • Outstanding debt
  • Length of credit history
  • Severity and frequency of derogatory credit information such as bankruptcies, charge-offs, and collections
  • The amount of credit used compared to the credit available

How does my credit score affect me?
Your credit score is an important indicator of your financial health. Lenders use your credit score to determine:

  • Whether or not you are a good candidate for a loan
  • What type of interest rate you will pay
While your credit score is a key determinant of your creditworthiness, lenders also examine the information on your credit report and your loan application. Regularly checking your credit report enables you to:
  • Be informed of the most up-to-date information in your credit history.
  • Correct any inaccuracies, to make sure that your credit data is a true depiction of your credit record and increasing your chances of receiving credit under the best possible terms
What is a "good" credit score?
There are several types of credit scores available. Typically, the higher the score, the better. Each lender decides what credit score range it considers to be a good credit risk or a poor credit risk. For this reason, the lender is the best source to explain what your credit score means in relation to the final credit decision. After all, they determine the criteria used to extend credit. The credit score is only one component of information evaluated by lenders.

What is credit scoring?
Credit scoring is a method used by lenders to help decide whether or not you are a good candidate for a loan.
Lenders employ a credit scoring system to determine your credit score:

  • Compares information in your credit report to the performance of consumers who have similar credit characteristics
  • Examines many credit characteristics including your payment history, the number and kind of accounts you have, the number and frequency of late payments, and any collections or bankruptcies
Generally speaking, positive credit characteristics make your score higher and help you to qualify for better loans. Negative characteristics make your score lower and may interfere with your ability to qualify for the best loan terms.

How is a credit scoring model developed?
A lender creates a credit scoring model by using several criteria:

  • Selecting a large sampling of customers
  • Analyzing the data in their credit reports to determine which factors relate to creditworthiness
  • Assigning a degree of importance to each of the factors, based on how accurate a predictor it is in determining who will repay their loan on time

Get your credit report and score NOW!



Click for Wichita, Kansas Forecast

Copyright © 2007 Data Synthesis All rights reserved.
Cyberguide to Wichita · P.O. Box 20538 · Wichita, KS 67208 · (316) 683-7868
Read Our Privacy Statement and Disclaimer

Submit Your Website | Link to Us | Advertise With Us | About Us | eMail Webmaster

Photographs on this web site may not be reproduced or copied without the express permission of Vic Bilson © 1997-2005